Beginner-friendly ways to earn interest on AVAX (Avalanche) or other assets

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Beginner-friendly ways to earn interest on $AVAX (@avalancheavax) or other assets. [1/14] 👇 🧵

I've received some questions from people looking for resources on how to earn interest on $AVAX. So, here are some very basic yield ideas for beginners. The same ideas can work for assets other than $AVAX.

1. Delegate your $AVAX to be staked: Here's a great video tutorial about that. youtube.com/watch?v=EJOg7ET5a6Y

2. You can also use a centralized exchange like @Binance to stake $AVAX. Currently, Binance is offering 11% APY if you lock AVAX for 30 days, and 21% APY if you lock for 90 days. (edited) So if you're not planning to sell your AVAX anytime soon, that could be a great option!

Other exchanges also have similar products. I've written about the basic ways to earn yield on Crypto before (DeFi Yield 101), and the differences between staking, lending and liquidity pools. twitter.com/shivsakhuja/status/1480336210887249921?s=20

3. You can lend out your $AVAX using a centralized platform like @CelsiusNetwork. (5.75% APY) Again, there are many competitors to Celsius that will offer the same service (like @BlockFi and @investvoyager).

4. You can lend out your AVAX using a decentralized platform like Trader Joe (7.75% APY) Usually decentralized lending rates are slightly higher than centralized rates.

5. You can farm your AVAX against another asset. For example, on @traderjoe_xyz, you can currently get: • 36% on AVAX-UST • 20% on AVAX-ETH • 15% on AVAX-BTC The rates do fluctuate a lot though so it might go up or down over time.

There is a risk of impermanent loss when you're providing liquidity though. Here's an explanation and the math behind impermanent loss: twitter.com/shivsakhuja/status/1482188295488430086?s=20

Here's an interesting video by @milesdeutscher about @avalancheavax and $AVAX yield strategies: youtube.com/watch?v=4nTVFktRfEM

6. Run an automated covered call strategy on @ribbonfinance (Currently estimated ~22% APY) This is more advanced / risky, and you should only do this if you understand how it works, and the market conditions under which to do this. app.ribbon.finance

This thread by @CryptoHarry_ explains Covered Call options pretty well: twitter.com/CryptoHarry_/status/1478724805826203648

I've also written about some riskier / more complicated ways to earn yield on your crypto: twitter.com/shivsakhuja/status/1491679865040359426?s=20